Certificate



F. E. HAMILTON.' CERTIFICATE.

Pandsept. 19,1922.

PPucATIoN FILED TUNE lz. lT920. 1,429,423.

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implicati-untitled June 12, `1920. Serial No. $8,402.

ToaZZ whom 'tmay cmtcemaf y Be it known thatjl, ErLANois E. .HAMiL- TON,a citizen of the United-States of Ameri yica,`;-residing .at city,`countygand State of New York, have invented new rand usefulImprovementsinl'Certicates, oi which the shares of stock or portions ofthe vcorporation mayv be transferred by delivery if necessary,accompanied by a proper endorsement and appropriatey adjustment of. the

books of the corporation.

While the corporation business it is subject tothe disadvantage that astockholder in a corporation has merely a right to participate in thevmanagement of the corporation so far as he is permitted by the laws ofthe State andthe by-laws of they corporation and receive his share ofthe dividends. He does not own anyv of the eifects of the corporationand consequently has no -v right to appropriate them to his ownuse. Hecannot, therefore, avail himself of the low 'prices of a corporationscommodities but must buy them of the corporation as they would be boughtby a stranger, paying the full price including the profit yof the cor-lporation. This may be contrasted with the case where a person as anindividual engages in an enterprise. He not only obtains the profit fromthe sale of commodities, vbut in V asmuch as he is entitled to all ofthe things which he owns he may appropriate them to his own use insteadof selling them to others and thus he will obtain the goods for hisbusiness. Thus if the concern is manufacituring the goods he can obtainthem at cost price and ifthey are bought from others he will have thebenefit of the wholesale price.

It is the main object of the present invention to provide aninstrumentality whereby at the time evidence of the ownership of a vperson of a share in a corporation or other y has many advan tages as vamedium for the transaction of organizations.

enterprise.isdelivered-to him, l,he will also receive combinedtherewith, `evidenceof his'` rightV to a .portion 0f the pricel ofgoodspurchased by him from'. thej' corporation. In. i. i u

this way one ofthe disadvantages,as re ieri-ed to above, of ownerhipincorporz'nticns` as distinguished from private ownership is avoided. Tothis end there is pro-videda certificate having a body portion and acou-l p onv constituting together a completecerticate of interest in anenterprise,*including thecertitication of' ownership of a 'sharein theenterprise and the right to obtainv the products of' the concern at adiscount. When' a person acquires ownership ofa share in the enterprise,his right tothe discount at! vtaches and hel receives evidence o t hisshare v ownership and discountl right simultane' ovusly, the wholeevidencing thefcomplete right including the condition precedent to thediscount right, namely, share ownership,

and the evidence of the discount right itself,

while the body portion alone is Ia certiiicate ofshare ownership. i vlVhile the invention ismost generally `useful in connection'withcorporations, it is not limited to such use but may be availed of 1nconnection with Othery and ancillaryobjects'ofthe invention willappearhereinafter. f l

The accompanying drawing, which illustrates the invention,is a taceviewof a certiicate embodying the invention. p

Referring to the drawing,the body por. tion l consists of a sheet ofpaper or other suitable material which bears matter certify'- ing 'thatVacer-,tain personv is the owner of shares of stoclrin a `namedcorporation,

spaces being provided atappropriate points enterprises of `diii'e'rentshares at 3, the date at4, 5 and 6 and signa-, i

tures of proper officers of the corporation at 'I y vthe numericaldesignation of the number lof own use at the low price commanded by the.rality of coupons 11,12, 13 and 14l each be-` ing evidence, inconnection with the` bodyl v forr the said `owner at 2,'the number of` yiio portion, of the right of the ownerv to obtain goods from thecorporation at ak discount.

r t the time of making each purchase a coupon may be detached so thatthe corporation may have record oi' the transaction. The inat'ter oneach coupon is evident from the drawing so that 'further referencethereto is unnecessary.

YWhile the invention has been illustrated in what is considered its bestapplication, it Will be apparent that the structure shown maybevariously modilied Without departing from the spirit of the inventionwhich is not therefore limited to the structure shown in the drawing.

7What I claimvis:

A certificate comprising` a body portion and a coupon, said body portionand coupon bearing` indications to constitute togetherv a certilicate ofownership of interest in an enterprise, said interest consisting ofownership of a share in said enterprise and a right to a portion of theprice of goods sold by said enterprise to the holder of said certiicate,said body portion alone constituting a certificate of ownership 4ofshare in said enterprise only. Y

ln testimony whereof I have signed this specification this 10th day ofJune. 1920.y

FRANCIS E. HAMILTON.

